Liquidity

The Company's consolidated financial statements are prepared using United States (“U.S.”) generally accepted accounting principles in the (“U.S. GAAP”) applicable to a going concern which contemplates the realization of assets and liquidation of liabilities in the normal course of business. As of April 30, 2016, the Company has an accumulated deficit of $84,691,617 and incurred a net loss for year ended April 30, 2016 of $6,063,784.

Over the past year, funding was provided by investors to maintain and expand the Company. The remaining challenges, beyond the regulatory and clinical aspects, include accessing funding for the Company to cover its future cash flow needs. Over the past year, the Company continued to acquire funds through the Company’s S-3 Registration Statement pursuant to which its exclusive placement agent, Chardan Capital Markets, LLC (“Chardan”), sells shares of common stock “at-the-market” in a program which is structured to provide up to $50 million dollars to the Company less certain commissions.

The Company requires substantial additional capital to finance its planned business operations and expects to incur operating losses in future periods due to the expenses related to the Company’s core businesses. The Company has not realized material revenue since it commenced doing business in the biotechnology sector, and there can be no assurance that it will be successful in generating revenues in the future in this sector. The Company believes that cash as of April 30, 2016 and the proceeds from the additional sale of registered and unregistered shares of its common stock will raise sufficient capital to meet its capital requirements. From May 1, 2016 through July 29, 2016; the Company raised additional capital of approximately $1 million in “at-the-market” transactions. The Company believes that sales of unregistered shares of its common stock any public offerings of common stock the Company may engage in will provide sufficient capital to fund its operations through July 31, 2017. However, the Company’s ability to raise additional capital is limited by its inability to use a short form registration statement on Form S-3. As of July 29, 2016, the Company does not meet the eligibility requirements in order for it to be able to conduct a primary offering of its common stock under Form S-3 or to file a new Registration Statement on Form S-3. The Company may be able to regain the use of Form S-3 if it meets one or more of the eligibility criteria, including: (i) the aggregate market value of the Company’s common stock held by non-affiliates exceeds $75 million; or (ii) the common stock is listed and registered on a national securities exchange.

If the Company is not able to raise substantial additional capital in a timely manner, the Company may not be able to commence or complete its planned clinical trials.

The Company will continue to be dependent on outside capital to fund its research and operating expenditures for the foreseeable future. If the Company fails to generate positive cash flows or fails to obtain additional capital when required, the Company may need to modify, delay or abandon some or all of its business plans.

Management Goal and Strategies

The Company’s goal is to become an industry-leading biotechnology company using the Cell-in-a-Box^® technology as a platform upon which treatments for cancer and diabetes are developed and obtain marketing approval for these treatments from regulatory agencies in the U.S., the European Union, Australia and Canada.

The Company’s strategies to achieve this goal consist of the following: